Search

The parameters of the effectiveness of information are determined by the degree of subjectivity-objectivity, by the user's commitment to it, by the temporal duration taken as a reference, but also by qualitative and quantitative aspects, the most expressive example being the notion of "accounting information". A utility value is associated with information, representing the possibility of savings, and this is calculated on the basis of the difference between the effects of a decision promoted with and without the knowledge component. The utility value is directly influenced by the physical and moral depreciation that takes precedence. Information is exposed to a high degree of degradation, which is automatically included by the actions of production and diffusion resulting from the diversified and polyvalent interaction with the sum of information in a given environment. [ABSTRACT FROM AUTHOR]

ABSTRACTWe use a case study to illustrate how different acquisition methods can result in different amounts of goodwill recognised on financial statements in China. China Merchants Bank adopted a two-step acquisition method: first, it acquired 53% of the shares of Hong Kong’s Wing Lung Bank to gain corporate control in 2008; second, it acquired the remaining 47% of shares in 2009. Using this method, China Merchants Bank recognised the acquisition premium as goodwill only in the first step and recognised the acquisition premium in the second step as a decrease in additional paid-in capital. This two-step acquisition method significantly reduces the amount of goodwill shown on financial statements and lowers the likelihood and amount of subsequent goodwill impairment. Different acquisition methods can lead to different amounts of goodwill initially recognised when accounting standards permit the partial goodwill method and regard the transactions between the parent and non-controlling shareholders as equity transactions.

We use a case study to illustrate how different acquisition methods can result in different amounts of goodwill recognised on financial statements in China. China Merchants Bank adopted a two-step acquisition method: first, it acquired 53% of the shares of Hong Kong's Wing Lung Bank to gain corporate control in 2008; second, it acquired the remaining 47% of shares in 2009. Using this method, China Merchants Bank recognised the acquisition premium as goodwill only in the first step and recognised the acquisition premium in the second step as a decrease in additional paid-in capital. This two-step acquisition method significantly reduces the amount of goodwill shown on financial statements and lowers the likelihood and amount of subsequent goodwill impairment. Different acquisition methods can lead to different amounts of goodwill initially recognised when accounting standards permit the partial goodwill method and regard the transactions between the parent and non-controlling shareholders as equity transactions. [ABSTRACT FROM AUTHOR]

AbstractThe research questions that are solved in this paper are as follows: (1) how the value relevance of accounting information evolved from a developing country perspective and (2) how the accounting reform impacts on value relevance. This study aims to assess the value relevance of accounting information released by non-financial firms listed on the Vietnam stock exchange for the period of 2010–2020. Our paper will contribute more supportive empirical evidence about the usefulness of value relevance research through doing research in Vietnam as a developing country, where experiences switching from a planned economy to an open economy and the regulations change continuously. We provide useful literature overview and important implications for both equity investors and standard setters. Based on usefulness information theory and asymmetric information theory, research hypotheses are designed. The study then uses the Ohlson price model to test these hypotheses. In the model, the explanatory variables, namely, book value per share, earnings per share, and share prices as independent variable, are examined; panel corrected standard error estimator (PCSE) is applied. The findings reveal that both earnings and book value of equity exhibit a positive and significant effect on stock prices. Earnings explain the higher variation in stock market values on the Vietnam Stock Exchange compared to book value of equity. The study, however, finds a decreasing trend in the change of the value relevance over the period 2010–2020 and accounting reforms in 2014 did not improve the value relevance.

Cash acquires an important position in a business entity as liquidity position of a company is vital for financial decision making. Acceptability of cash has a higher degree in comparison any other form of current assets. Further the cash is converted into various other assets necessary for business operations in the form of working capital. The operations of a business are depending upon the ability of the management to deal with cash and cash equivalents. It is the chief source of input that is required to run the business in long run. The importance of cash lies in its ability to deal with disbursement of payments and other obligations without any restrictions. Availability of cash makes a business deal better at the time of procurement of goods and services. Business can attract higher discount by making real time cash payments. It results in higher profitability of a firm. The accounting for cash transactions also becomes easy in comparison to accrual base accounting but at the same time the limitation of cash-based accounting system is the origin of accrual-based accounting. It is also aggregable that the principle of matching revenues with cost is justified only in the presence of accrual- based accounting. The accrual-based accounting concept is a well settled and adopted concept all across the globe as it clearly signifies the rules of journalizing the accounting transaction. It has become the necessity of the business to provide credit on sales and purchase as well along with deferred payments and income receivables. As far as the taxation policy is concern it’s easy for the state to levy and collect tax on accounting profits with accrual-based system. Investors holds fundamental analysis as a major criterion for their investment decisions where profitability ingredient plays an important role. Fundamental analysis is a method used by investors to identify the real value of a share. The market price may not reflect the actual value of the stock. The stock may be overvalued or undervalued in the market. Fundamental analysts study the underlying health of the company in order to find the intrinsic value. This is done by using various qualitative and quantitative factors such as the company’s revenues, profit margins, return on equity, future growth potential and other metrics. The main purpose of this method is to identify companies that that are fundamentally strong in order to invest in them for the long term. The present study attempts to investigate the opinion of investors regarding their decisions with reference to fundamental analysis. It studies their perception on investment where the financial reporting is based on accrual or cash-based system of accounting. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Analisis Bisnis Ekonomi (JURBE) is the property of Universitas Muhammadiyah Magelang and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines the value relevance of accounting information after PSAK 72 on the companies that are listed on Indonesia Stock Exchange. Ohlson’s model is used to evaluate the research hypothesis and to estimate the research model using Generalized Least Squares (GLS) regression analysis. The results indicate that applying PSAK 72 has value relevance to accounting information. Stock price significantly correlates with the company’s earnings, but the book value of equity has no value. PSAK 72 requires professional interpretation and judgment, which resulted in the recognition of differences for similar transactions. The complexity of PSAK 72 requires adjustments for the company to reduce profits, and it will react negatively to the users. PSAK 72 will better disclose its contract revenue with customers, but it requires lengthy preparation. To provide better information, IAI (Ikatan Akuntan Indonesia) needs to consider the transition period for the implementation.

The purpose of this study to examine the impact of new accounting standard of finansial instrument (PSAK 71) and lease (PSAK 73) on financial performance and liabilities of Indonesia listed companies. By applying the purposive sampling method, 140 companies for 2019 and 2020 were selected as the sample of this study. The data of this study analyzed using Paired Sample T-test and Wilcoxon Signed Ranks Test. The findings of this study show that new finansial intrument accounting standard PSAK 71) implementation impact to finansial performance (ROE) and liabilities (DAR and DER). This study also found that new lease accounting stardard impact to finansial performance (ROE and ROA) and liabilities (DAR). Moreover this study found that after implemnentation of PSAK 71 will be followed by ROE decreasing and DAR and DER increasing. Meanwhile, firm finansial performance that proxied by ROE and ROA decrease and DER increase since new lease accounting standard (PSAK 73) implemented by indonesian listed companies. This study conclude that new finacial instrument and lease accounting standard finansial performance and liabilities of indonesian listed companies. Indonesian listed companies deal with lower finansial performance and higher liabilities financing after apllying those new accounting standard.

Copyright of Accounting Auditing Control / Comptabilité Contrôle Audit (English Edition) is the property of Association Francophone de Comptabilite c/o Solle and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This activity aims to increase Small Medium Micro Enterprises (MSME) managers' capacity in preparing financial reports by the Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM) using a spreadsheet application. Implementing this activity was by providing training to MSMEs in Bukittinggi on financial management using a Microsoft Excel-based application previously developed by the team. MSMEs can use eight main menus to manage their finances in this simple application. The menus are Account List, Code List, Journal, Ledger, Work Sheet, Subsidiary Ledger, Income Statement and Statement of Financial Position. The MSME owners will fill in these menus according to their activities and transactions. 17 MSMEs in Bukittinggi participated in this activity. The results of this activity show that the application makes it easier for MSME managers to understand financial management, and it also assists them in preparing their financial statements. This activity contributed to MSMEs improving their capabilities related to transaction recording and financial reporting based on Financial Accounting Standards.

This study investigates whether financial analysts accurately incorporate other comprehensive income (OCI) and its components into earnings per share (EPS) forecasts. Using a sample of 200 of the US's largest commercial banks from 2011 to 2020, our findings suggest that only OCI available for sale securities (AFS) and OCI Currency exhibit a positive and significant relationship with forecast accuracy, while cash flow hedges increase forecast error. Furthermore, additional robustness tests are conducted, revealing that large OCI AFS securities enhance analysts' forecast accuracy as financial analysts have expertise in interpreting these figures. In addition, the accounting standard update (ASU 2016–01) leads to decline in forecast accuracy. Moreover, OCI debt securities negatively impact forecast accuracy. However, analysts have gained more experience and insight into forecasting cash flow hedges and foreign currency translation, compared to the challenges posed by understanding ASU 2016–01. [Display omitted] • The study explores how OCI affects forecast accuracy: AFS and OCI Currency improve it, while cash flow hedges increase errors. • OCI gains/losses may signal future reclassifications, prompting analysts to provide more accurate forecasts. • ASU 2016-01 reduces forecast accuracy, likely due to increased earnings volatility (McGregor, 2022). • ASU 2016-01 enhances Currency and Hedge usefulness but lowers OCI debt securities' relevance, highlighting the need for updates. • Challenges in understanding ASU 2016-01 persist, highlighting the need for research that could affect investment strategies. [ABSTRACT FROM AUTHOR]

The objective of this research is to analyze the competency, the comprehension of the government accounting standard, the implementation of internal control system and the quality of financial report in Kepahiang Regency.This Research was done to financial managers. The data were gathered by distributing the questionnaire to 102 respondents. This study used the data analysis of Multiple Linear Regression. The result of this research showed that competency has significant effect on the quality of financial report. The comprehension of the government accounting standard has significant effecton the quality of financial report. The implementation of internal control system significant effect on the quality of financial report

The purpose of this research to analyze how the application of standardized sovereign sukuk accounting which is adjusted to AAOIFI and PSAK and determine the factors that have the highest level of importance that affect the realization of these standards. The method used is descriptive qualitative analysis and the Analytical Hierarchy Process (AHP) approach. The result is the application for transaction recognition starting from the time of the engagement between the issuer and the investor. For the initial measurement of the valuation based on the yield according to market value, the current practice still requires improvements in determining the reward, recording the amortization of premiums/discounts, transfer of beneficial rights to underlying assets, and purchasing undertaking transactions. To presentation and disclosure, the presentation standard still needs improvement because sukuk is proof of ownership of assets and not evidence of debt so that the presentation is separated from the debt group. As for disclosure, the information is not as complete as corporate sukuk and AAOIFI FAS number 17. The factors that have the highest level of importance in realizing the accounting standard are government role and commitment factors. The results of this study aim to increase transparency and accountability. ABSTRAK Penelitian ini bertujuan untuk menganalisis bagaimana penerapan Standar Akuntansi Pemerintah untuk transaksi Sukuk Negara yang disesuaikan dengan mengacu pada PSAK nomor 110 dan AAOIFI FAS nomor 17 serta menentukan faktor yang memiliki tingkat kepentingan tertinggi yang mempengaruhi terwujudnya standard tersebut. Metode yang digunakan adalah pendekatan analisis kualitatif deskriftif dan pendekatan Analitycal Hierarchi Process (AHP). Hasil penelitian ini adalah penerapan untuk pengakuan transaksi dimulai sejak terjadinya perikatan antara penerbit dengan investor. Praktik yang berjalan sudah sesuai dengan standar yang seharusnya. Untuk pengukuran awal penilaian berdasarkan yieldnya sesuai nilai pasar, praktik yang berjalan masih memerlukan penyempurnaan dalam penentuan imbalan, pencatatan amortisasi premium/diskon, transfer hak manfaat asset yang dijadikan underlying, dan transaksi purchasing undertaking. Terkait dengan penyajian dan pengungkapan, standar penyajiannya masih perlu penyempurnaan karena sukuk merupakan bukti kepemilikan atas aset dan bukan bukti utang sehingga penyajiannya dipisahkan dari kelompok utang. Sedangkan untuk pengungkapan, informasi transaksi Sukuk Negara belum selengkap sukuk korporasi dan AAOIFI FAS nomor 17. Adapun faktor yang memiliki tingkat kepentingan tertinggi dalam mewujudkan standar akuntansi transaksi Sukuk Negara dengan pendekatan AHP adalah faktor peran dan komitmen pemerintah. Hasil penelitian ini bertujuan untuk meningkatkan transparansi dan akuntabilitas yang memberi dampak pada meningkatnya kepercayaan masyarakat untuk berinvestasi di Sukuk Negara.

The purpose of accounting standard is to govern the accounting process and subsequently reporting for entities. Hence, the absence of a specific accounting standard to govern the accounting for an entity would be problematic and would give rise to several issues. This research aims to understand how the absence of a specific accounting standard affects the accounting practices of an entity. The findings show how the waqf corporation tries to adhere to the prevailing accounting standard, which is not specific for waqf institutions, and how important it is to have a specific accounting standard in place for waqf institutions. [ABSTRACT FROM AUTHOR]

This study aims to clarify the importance of virtual currencies due to the increasing of using it in transactions between people without a broker, and these currencies are characterized that they are not controlled by any central bank, and using it in transactions poses a challenge to accounting. The study concluded that the accounting standards issuing bodies conducted studies on the accounting of operations conducted through virtual currencies, such as the proposal of the Accounting Standards Board of Japan for a standard project, which included a model of how to record the required disclosures of the moneychanger of these currencies. [ABSTRACT FROM AUTHOR]

Purpose – This study researches whether the change in NBC TG, promoted in 2011, that excluded Prudence (Conservatism), had any effect on companies’ accounting information. Design/methodology/approach – Quantitative approach, using a linear regression based on the Basu (1997) method, Wilcoxon tests and t test, on a sample with 109 companies, listed on the BM&FBovespa, from 2008 to 2013. Findings – The results indicate that conservatism is present in accounting for the entire period, and changes do not occur in this feature of the accounting information as of 2011. Originality/value – This research reinforces the perception of the superiority of economic interest, in particular for possible tax gains, to the detriment of accounting information quality, be it of regulatory origin or another.

One influence analysis method of top management team and investment efficiency based on analytic hierarchy process and support vector machine model has been proposed to improve the influence analysis accuracy of top management team and investment efficiency under international accounting standard. Firstly, it takes A stock companies in Shanghai and Shenzhen between 2008 and 2011 as research objects and sets up influence model of top management team background feature for the relationship between accounting robustness and investment efficiency; secondly, based on analytic hierarchy process and support vector machine, it makes comprehensive consideration for the index weights of different influencing factors within investment efficiency impact evaluation system, which makes the prediction results more reasonable and realizes the accuracy of investment efficiency affecting evaluation analysis algorithm; lastly, the effectiveness of the proposed method has been verified through simulation experiment. [ABSTRACT FROM AUTHOR]